Sorry to the optimists out there but this AGM was definitely not good, especially in light of WOW announcing good results.
The AGM shows the group break up of EBITDA by division. Look at Food and Grocery, most of MTS profit comes from this division.
And this division is the one being hit.
This is not just an operational issue (which I love, because it presents buying opportunities), this is a potential structural issue.
Intrinsic value was below shareprice even before this profit downgrade. Yet the potential dividend yld was holding the stock up.
I had a small position before today in the hope EPS would be forecast to be either stable or growing (business conditions are hard out there, I would have been happy with stable earnings even where intrinsic value is below share price, so long as I am compensated through the dividend yield, but alas it was not to be.
I'm out, and I wont be returning until I see stabilisation of earnings.
Second point: looks like the CEO timed his exit well. And this is not just some run of the mill, 3 year tenor CEO. This is the CEO who built this company. (For the youngies out there, google who Metcash was before it was Metcash, wasn't a pretty picture).
Sorry guys, but to me its a case of never only one cockroach in the kitchen.
No catching a falling knife for this position.
Sometimes a smart investor still needs to think like a trader.
MTS Price at posting:
$3.25 Sentiment: None Disclosure: Not Held
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